the norwegian akershus eiendom property market · 2018. 12. 20. · the oil and gas industry...

The Norwegian Commercial Property Market

Akershus EiendomM

arket Report

Spring 2018

Spring 2018

The Norwegian Commercial Property Market

This market report is intended to provide an overview of the Norwegian property market. The report highlights important trends and gives specific examples of transactions in the leasing and investment markets, important new property developments, etc.

This report is intended for general information and is based upon our own material which we believe to be reliable or material supplied to us. Whilst every effort has been made to ensure its accuracy and completeness, we cannot offer any guarantee that factual errors may not have occurred. Akershus Eiendom takes no responsibility for any damages or loss incurred owing to the inaccuracy or incorrectness of this report. This report was last edited on March 13th 2018.

For further information please contact Akershus Eiendom AS. Comments, suggestions or questions regarding the contents and presentation of this report are welcome at [email protected]

Table ofContents

6 Main Points

Macro Economics8 The Norwegian Economy

The Oslo Office Market12 Overview of the Market14 Rent Levels18 Survey of Relocation Patterns20 Vacancy24 Development

30 The Investment Market

34 Regional Property Markets

42 International Office Markets

46 The Retail Market

50 The Hotel Market

54 The Logistics Market

58 The Residential Market

61 Definitions

62 Akershus Eiendom AS

6Main Points

Main Points

• Oslo office rents rose slightly in 2017, but the growth was limited to a few areas; the CBD, Skøyen, Lysaker, and Nydalen. We forecast 5-10 % growth in the same areas throughout 2018.

• Our annual survey of Oslo office users’ moving patterns show strength in the CBD, which retains most of its tenants and also draws in more tenants from the western office areas.

• Oslo has a low-to-moderate office construction volume for 2018-19, which is somewhat surprising given the relatively solid demand side. We see some more speculative construction, and forecast a significantly higher volume for 2020-21.

• The January 2018 Oslo office vacancy was 6.5 %, slightly down over 2017. Our forecast is for vacancy to keep falling for two years, mainly due to a low or negative net added office stock.

• The 2017 commercial property transaction volume ended at close to NOK 90 billion. This is the second highest volume recorded and at the same time a record-high number of individual transactions. The investment market has continued its strong pace in Q1 2018 and we expect solid volumes going forward.

• Office prime yield still stands at 3.75 %. Several Q4-transactions confirmed this and interest from both international and domestic buyers is strong. Equity-based investors dominate the prime yield segments, while closed-ended funds are most active in the fringe areas.

• In Stavanger, Bergen and Trondheim, both the investment markets and the leasing situation is improving. They see less interest from international buyers, but many domestic and local investors keep the transaction markets active. The markets are not as affected by the housing market stagnation as Oslo.

• The retail market has seen relatively low activity compared to other segments throughout 2017, and the property values are perceived to be more uncertain, as e-commerce trends are the most discussed in the industry. Consumer confidence remains strong, and year-on-year retail sales volume increased by 2.2 % in January.

• The logistics market saw a yield shift for prime assets late 2017, while the leasing market remains stable. Logistics is currently in focus for many investors. This is both due to the consumption-transport focus of the Norwegian logistics market in general, and to the perception that e-commerce growth fuels a need for new logistics stock.

• The Norwegian hotel market remained solid in 2017, but the strong growth from 2015-16 was not repeated. Domestic business travel is now the prime source for growth, and this indicates that the tourist boom, linked to the currency depreciation, might have peaked.

8Macro Economics

The Norwegian Economy

2017 was a turnaround year for the Norwegian economy. Driven by a highly expansive fiscal and monetary policy, a weak krone, low wage growth and strong growth in house building, the growth is now returning. Interest rates might start rising this year, but most economists expect them to remain low for some time ahead. Statistics Norway (SSB) expects the rates to be kept low until early 2019, while many others expect an increase late 2018. In early March 2018, Norges Bank lowered the key target inflation rate from 2.5 % to 2 %, in line with other developed countries.

According to SSB, the Norwegian mainland economy expanded by 1.8 % in 2017. For 2018, it is estimated that GDP will grow with 2.4 %, and in 2019 GDP growth is forecasted to be slightly lower, at 2.3 %.

The oil and gas industry investment volume, having peaked in 2013 at 9.3 % of GDP, fell sharply in 2015 and 2016, this continues in 2017 but with a slower pace with a fall of 4 %. DNB believes that the bottom has been

reached, as the oil/gas investments was 6 % of mainland GDP in 2017. DNB expects the investments to increase with 7 % this year, and 8 % increase in 2019 and a slower growth in 2020 with a 4 % increase; SSB mostly agrees. As for other sectors, DNB expects that especially the service sector will increase their investments. DNBs nominal oil price estimates are for 2018, 61 USD, 68 USD in 2019 and 80-76 USD in 2020-2021.

Traditional export growth in 2017 was 2.2 %. SSB Expects traditional export growth for 2018-2020 to be between 4.1 % and 4.7 % p.a.

The household savings rate estimate for 2017 was 7.3 % and for 2018 the SSB forecast is 7.2 %. According to SSB, residential prices rose by 5.0 % from 2016 to 2017, and the forecast for 2018 is a fall of 2.8 %. DNB and SSB expect the housing investment volume to drop 10-11 % over the coming two years. The average number of people per household in Norway is 2.2.

Norwegian unemployment decreased to 4.2 % in 2017, from 4.7 %. It is estimated by SSB that it will decline slowly over the coming years to 3.7 % in 2020. In 2017, the population grew with 37,300 people in Norway or 0.7 %. Nominal wages increased by 2.3 % in 2017, SSB forecasts a rise of 2.9 % in 2018 and 3.5 % in 2019.

CPI adjusted for tax changes and excluding energy products (CPI-ATE) were in January 1.1 % and CPI before adjustments 1.6 % as well. Oslo Stock Exchange (OSEBX) has so far in 2018 (early-March) increased with 1.8 %.

9Macro Economics

Source: Statistics Norway As of March 2018

01 Key Economic Indicators Level NOKm Annual Change (%)

2017 2013 2014 2015 2016* 2017* 2018F 2019F 2020F 2021F

Gross domestic product 3 279 363 1,0 2,0 2,0 1,1 1,8 2,0 1,9 2,7 2,4

GDP mainland Norway 2 803 831 2,3 2,2 1,4 1,0 1,8 2,4 2,3 2,3 2,1

Consumption in households etc. 1 396 161 2,8 2,1 2,6 1,5 2,3 2,5 2,7 2,5 2,8

General government consumption 790 560 1,0 2,7 2,4 2,1 2,0 1,5 1,7 1,7 1,7

Gross fixed investment 784 213 6,3 -0,7 -4,0 -0,2 3,5 2,5 2,1 1,9 0,4

Exports 1 148 215 -1,7 3,1 4,7 -1,8 0,8 2,0 2,0 4,5 3,7

Crude oil and natural gas 441 844 -5,5 2,7 2,1 4,3 1,9 -0,5 -0,7 5,6 4,7

Traditional goods 381 494 1,3 3,1 6,9 -8,2 2,2 4,7 4,1 4,5 3,6

Imports 1 082 212 5,0 2,4 1,6 2,3 2,2 2,2 2,8 2,5 2,2

Traditional goods 635 092 2,3 2,1 3,2 -0,4 3,2 3,2 3,6 3,3 2,8

Prices

CPI 2,1 2,0 2,1 3,6 1,8 2,0 1,6 1,8 2,0

CPI-ATE 1,6 2,4 2,7 3,0 1,4 1,7 1,7 1,7 1,8

Housing Prices 4,1 2,7 6,0 7,0 5,0 -2,8 1,1 1,5 2,3

Employment

Unemployment rate (% of work force) 4,2 3,5 3,5 4,4 4,7 4,2 3,9 3,8 3,7

Employed persons (percentage change) 2 592 1,1 1,2 0,4 0,3 1,1 1,1 1,1 1,0

Participation rate (level) 71,2 71,0 71,2 70,8 69,9 69,8 69,9 70

Interest rates 1. mar. 2018

10-year Government Bond rate (%) 1,90 3,00 1,54 1,48 1,66 1,61 1,90

Money market rate (level) (3M NIBOR) 1,03 1,8 1,7 1,3 1,1 0,9 0,8 0,9 1,2

10Macro Economics

Key Interest Rates 2003–2018

Change in Total Employment Norway 1993–2020E

02

03

Jan

03

Jul 0

3

Jan

04

Jul 0

4

Jan

05

Jul 0

5

Jan

06

Jul 0

6

Jan

07

Jul 0

7

Jan

08

Jul 0

8

Jan

09

Jul 0

9

Jan

10

Jul 1

0

Jan

11

Jul 1

1

Jan

12

Jul 1

2

Jan

18

Jul 1

7

Jan

17

Jan

16

Jan

13

Jan

14

Jan

15

Jul 1

3

Jul 1

4

Jul 1

5

0 %

1 %

2 %

3 %

4 %

5 %

6 %

7 %

8 %

Source:DNB

NIBOR 3 monthsSWAP 10 years10 year Gov. BondNorges Bank, Sight deposit rate

1993

1994

1996

1998

200

0

200

2

200

4

200

6

200

8

2010

1995

1997

1999

200

1

200

3

200

5

200

7

200

9

2011

2012

2013

2014

2015

2016

2020

E

2019

E

2018

E

2017

E

3 000

2 600

2 800

2 400

2 200

2 000

1 600

1 400

1 200

1 000

1 800

-2 %

-1 %

0 %

1 %

3 %

2 %

4 %

Employees, thousands Change, %

Source: Statistics NorwayAs of December 2017DNB

National employment change %, right axis Employment change %, SSB forecast 10 year Total employed Norway, thousands, left axis Total employed, SSB forecast

0.7

%

1.9

%

2.0

%

1.7

%

2.9

%

2.7

%

0.9

%

0.6

%

0.3

%

0.4

%

0.5

%

1.3

%

3.4

%

4.1

%

3.2

%

-0.5

%

-1.2

%

-0.5

%

1.5

%

2.1

%

1.1

%

1.2

%

0.3

%

-021

%

1.1

%

1.1

%

1.1

%

1.0

%

11Macro Economics

Exchange Rates 2005–2018

Index, 2005 = 100

Source: Norges Bank

USD/NOKEUR/NOK

05

Jan

05

Jul 0

5

Jan

06

Jul 0

6

Jan

07

Jul 0

7

Jan

08

Jul 0

8

Jan

09

Jul 0

9

Jan

10

Jul 1

0

Jan

11

Jul 1

1

Jan

12

Jul 1

2

Jan

18

Jul 1

7

Jan

17

Jan

16

Jul 1

6

Jul 1

4

Jul 1

5

Jan

13

Jan

14

Jan

15

80

90

100

110

130

120

150

140Ju

l 13

Main Indices Oslo and London

Index, 2004 = 100

04

Jan

04

Jul 0

4

Jan

05

Jul 0

5

Jan

06

Jul 0

6

Jan

07

Jul 0

7

Jan

08

Jul 0

8

Jan

09

Jul 0

9

Jan

10

Jul 1

0

Jan

11

Jul 1

1

Jan

12

Jul 1

2

Jan

18

Jul 1

7

Jan

16

Jul 1

6

Jan

17

Jan

14

Jan

15

Jul 1

4

Jul 1

5

Jan

13

0

50

100

150

200

250

300

450

500

400

350

Source: London Stock Exchange/Oslo Børs

Oslo Stock Exchange (OSEBX) London Stock Exchange (FTSE 100)

Jul 1

3

12The Oslo Office Market

Overview of the Market

The Oslo office building stock, including Lysaker/Fornebu, today stands at around 8.6 million m2. Of the total volume, roughly 3.3 million m2 are situated within the city centre. The city centre office areas are marked in the map as seven areas/circles, from Solli Plass in the west to Bjørvika in the east.

Since 2007, the city centre has seen major urban redevelopment. Two new neighbourhoods at the waterfront, Tjuvholmen and Bjørvika, have been developed to become mixed residential and commercial areas. Bjørvika still has ongoing large development projects, and in the longer term, Filipstad just west of Tjuvholmen will be available for major commercial and residential development.

Generally, Oslo has a great deal of urban sprawl, and the built-up area covers significant land areas compared to its population size. Most of the office building stock is concentrated in densely built areas, and this is visible in the map. Office zones

outside the Central Business District are generally found along the outer ring road from Lysaker through Nydalen, Hasle-Økern and Helsfyr-Bryn to Ryen. All areas have seen new development over the last 10 years, and Fornebu and Nydalen have seen the highest activity.

The area between the CBD and the outer ring road (in the map, seen as the Inner city West, North and East) is mostly in use for residential, education and retail purposes. The west of Oslo contains high-end residential areas with low density. The north-eastern corner of Oslo is the core area in all of Norway for logistical purposes, with many distribution centres for retail, wholesale and third-party logistics companies. Eastern and southern areas mainly consist of residential areas with varying degrees of density.

In most areas outside the major office hubs, we see slow but steady conversion of older office buildings into residential development projects, as these are generally

more profitable than refurbishment for continued office use.


06

Oslo Outer West Ullevål

Nydalen

SinsenStoroKjelsåsGrefsen

Oslo Outer East

ØkernAlna-Ulven

Ryen

Inner City East

Helsfyr-Bryn

Inner City North

Majorstuen

Skøyen

Lysaker

Fornebu

Oslo Outer South

InnerCityWest

C B D

The Oslo Office Area

Source: Akershus Eiendom

50 000 m²250 000 m²500 000 m²


Rent Levels

STATUSThe slight upward pressure on office rents observed in the beginning of last year accelerated throughout 2017 and into 2018. Prime rent, which have remained relatively stable since 2013, is increasing, and our prime rent estimate is now NOK 4,300 per m². Rents in Vika-Aker Brygge currently range from 3,400 to 4,300 NOK per m², yet space in the top floors of the most attractive premises see rents of approximately NOK 5,000 per m². Rental levels at Fornebu and the eastern fringe have remained stable since our last report, while there has been a slight increase in most other submarkets. Bjørvika and Skøyen recorded the highest increases – around 10-12 percent.

Since our last report, several notable new leases have been signed: Bane NOR has signed approximately 22,600 m² in Schweigaards gate 33, a new central office building developed by Bane NOR Eiendom. Atea has signed 9,000 m² in a new building at HasleLinje. As can be seen in the following table, many of the most notable lease contracts are signed in the city

centre, which is unusual. The two large law firms Thommessen and Arntzen de Besche will take 30 % of the high-end Vika project VIA. In Bjørvika, the law firm Ræder has signed the top floors of Diagonale, Dronning Eufemias gate 11. NAF will vacate their self-owned building at Bryn and move into Rådhusgata 2 in Kvadraturen.

TRENDS - RENTWe expect rents in the city centre, Nydalen, Skøyen and Majorstuen to rise by 5-10 percent during 2018, with an additional increase in the city centre of 5-10 percent during 2019. This forecast is based on rising demand for office space and the low level of new buildings entering the market during the upcoming two years.

TRENDS – FLEXIBLE WORKSPACECo-working and other forms of flexible workspace gained substantial traction throughout 2017. Increased focus on effective utilization of office space have evolved over several years. For larger companies this means more effective buildings, less

common area, flexible business centres and more. For smaller companies this might just as well mean relocating to office centres such as Regus, Spaces, Evolve, House of Business, and others. These office providers opened and signed contracts for multiple new centres in 2017:

• Spaces opened a 6,200 m² centre in Tollbugata 8

• House of Business opened a new 1,200 m² centre at Bryn

• Regus signed a new 2,000 m² centre in Posthuset

• Spaces signed a new 5,200 m² centre in Calmeyers gate 1 and a 2,900 m² centre in Torgbygget, Nydalen

We expect this expansion to continue, as their relative share of the office market is low and the demand for flexible workspace is increasing.


Oslo Office Rents January 2018

The map shows office rent levels for high-standard units larger than 500 m² in different parts of Oslo, as of January 2018.

Rent, NOK/m²: General high standard / Top standard and new space

07


3 200 / 4 3002 800 / 3 5002 250 / 2 9001 800 / 2 400

1 600 / 2 1001 400 / 1 9501 000 / 1 650

Oslo Office Leasing Examples

08


NydalenSinsenStoroKjelsåsGrefsen

Oslo Outer East

ØkernAlna-Ulven

Ryen

Inner City East

Helsfyr-Bryn

Inner City North

Majorstuen

Skøyen

Lysaker

Fornebu

Oslo Outer South

InnerCityWest C B D

Property/location Owner Tenants ~Floor space, m² AreaSchweigaards gate 33 Bane NOR Eiendom Bane NOR 22 600 CBD

Ruseløkkveien 26 Storebrand / Aspelin Ramm Advokatfirmaet Thommessen 7 800 CBD

Ruseløkkveien 26 Storebrand / Aspelin Ramm Arntzen de Besche 5 378 CBD

Calmeyers gate 1 SpareBank1 Spaces 5 200 CBD

Rådhusgata 2 Hathon Eiendom NAF 4 317 CBD

Youngstorget 3 Thon Eiendom Bring Dialog 3 900 CBD

Dronning Eufemias gate 11 HAV Eiendom / Thon Eiendom Advokatfirmaet Ræder 3 500 CBD

Akersgata 35 Storebrand Computas 3 000 CBD

Fjordalléen 16 DNB Næringseiendom Rystad Energy 2 600 CBD

Kirkegata 15 Kirkegaten 15 DA Teleperformance 2 236 CBD

Kronprinsesse Märthas plass 1 City Finansiering Nordic Trustee 1 500 CBD

Munkedamsveien 45 Thon Eiendom Infront ASA 1 250 CBD

Schweigaards gate 10 Oslo Areal, et al. Thales 1 200 CBD

Kronprinsesse Märthas plass 1 City Finansiering Cushman & Wakefield 1 000 CBD

Karvesvingen 5 Höegh Eiendom / AF Eiendom Atea 9 000 Hasle

Grenseveien 88 Gasmann Eiendom BUFDIR (Barne-, ungdoms- og familiedirektoratet) 5 001 Helsfyr

Nydalsveien 33 Avantor Spaces 2 800 Nydalen


Sources: Dagens Næringsliv Akershus Eiendom

Year-End Rent Levels 2004-2017

The table shows year-end rent levels based on signed contracts, both new signings and renegotations.

09

Sources: Dagens Næringsliv Akershus Eiendom

Office Rents 1986–2017

Nominal NOK

The figure shows rent levels based on signed contracts, both new signings and renegotations.

PrimeHigh std CBDNewer space CBDGood std CBD

High std SkøyenHigh std west fringeHigh std east fringe

10

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

5 000

4 500

1986

H2

1987

H2

1988

H2

1989

H2

1990

H2

1991

H2

1992

H2

1993

H2

1994

H2

1995

H2

1996

H2

1997

H2

1998

H2

1999

H2

200

0 H

2

200

1 H

2

200

2 H

2

200

6 H

2

2010

H2

200

3 H

2

200

7 H

2

2011

H2

200

4 H

2

200

8 H

2

2017

H2

2016

H2

2015

H2

2014

H2

2013

H2

2012

H2

200

5 H

2

200

9 H

2

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Prime 1 950 2 100 2 700 3 900 3 750 2 700 2 850 3 100 3 400 3 750 3800 3750 3850 4250

High std CBD 1 550 1 700 1 900 2 300 2 300 2 200 2 350 2 550 2 850 2 900 2900 2800 2900 3000

Newer space CBD 1 700 1 900 2 000 2 600 2 600 2 500 2 550 2 650 2 850 2 900 2900 2800 3000 3150

Good std CBD 1 250 1 300 1 400 1 900 1 900 1 850 1 900 2 250 2 250 2 400 2450 2400 2600 2800

High std Skøyen - - - - - - - - 2 450 2 650 2700 2550 2600 3000

High std west fringe 1 300 1 400 1 750 2 200 2 200 1 900 1 900 1 900 1 900 2 100 2100 1800 1800 1975

High std east fringe 1 100 1 150 1 300 1 550 1 650 1 550 1 650 1 650 1 700 1 800 1800 1800 1900 2100

The Oslo Office Market 18

Survey of Relocation Patterns

To map tenants’ relocation patterns across Oslo (including Lysaker and Fornebu), Akershus Eiendom annually collects a representative sample of recently signed lease contracts.

This year’s sample for our relocation analysis consists of 120 tenants occupying 209,000 m² (excluding renegotiated contracts and extensions). This is a slight decrease from last year but in line with earlier surveys. The most notable relocation examples include Bane NOR moving from multiple locations, including Stortorvet 7 (CBD) to Schweigaards gate (CBD), Computas from Lysaker (west) to Akersgata (CBD) and NAF from Bryn (east) to Kvadraturen (CBD).

2017 PATTERNSIf 2016 was the year of long-distance relocations, 2017 was the year of the short. 77 % of all tenants in the sample ended up moving within the same area. This is 10 % higher than 2016, but on par with 2015.

As seen in figure 11, the sample includes 75,000 m² of relocations from premises in Oslo East. This is twice as much as the previous year. And where the retention rate was only 51 % in 2016, an historical low, as much as 77 % chose to move within Oslo east in 2017.

The CBD usually sees a high share of the same: 86 % of all relocations from the area chose to stay within it. We also see that many companies have chosen not to move, but renegotiate their contracts, in the prime area Vika-Aker Brygge. This is most likely a result of low vacancy and few alternatives in the area.

The relocation pattern in the west resembles the trend from the 2016 survey where 30 % of all relocations migrated to the CBD. IT firms moving from Lysaker and Skøyen to the CBD is a major contributor to this trend. Thus, the recent decline in the oil industry is not the only challenge for the western areas.

The flow of tenants to Oslo east in 2016 did not continue into 2017. With Statsbygg taking

charge of several large public relocations, we expect further migration of government institutions from central locations to the eastern fringe.

HISTORICAL COMPARISONHistorical results of our relocation survey are shown in the bottom diagram.

Companies choosing to stay in the east (77 %) is up from its five-year average of 62 %.

There is a historically low volume of demand moving westwards from CBD. Lower levels have only been recorded once the last decade – which was last year.

In 2016 and 2017, the CBD has had a net inflow of relocating companies. This differs from what we have observed earlier. All surveys from 2012-2015 have shown a migration out of the city centre. We believe this is a result of more effective use of office space, driving to work being less important and attractive offices being a central part of attracting new talent.

The Oslo Office Market 19

Oslo11 Relocation Trends

for Signed Leases 2017

The map shows the relocation patterns for tenants who has signed new lease contracts for office space during 2017, as represented by their volumes.

The CBD is limited to Solli plass in the west and Bjørvika in the east.

Source:Akershus Eiendom

Oslo West Net effect: - 12 100 m²Oslo CBB Net effect: 19 200 m²Oslo East Net effect: - 7 200 m²

Relocation trends 2007 – 2017

From CBD, west and east

All tenants included in the survey:

Have signed a new lease contract. It is not a condition that the company has physically moved during the year.

Will occupy more than 500 m² of office space in their new location.

Share of office space

200

720

08

200

920

1020

11

2016

2017

2015

2014

2013

2012

200

720

08

200

920

10

2016

2017

2015

2014

2013

2012

200

7

200

9

2011

2017

2016

2015

2014

2013

2012

2010

200

8

2011

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

100 %

90 %

Moving from CBD Moving from West Moving from East


Moving to CBDMoving to WestMoving to East

12

Oslo West

Oslo CBD

Oslo East

32 700 m² Staying (64 %)

69 600 m²Staying (86 %)

2 200 m²

3 200 m²4 200 m²

59 600 m²Staying (77 %)

7 800 m²

15 800 m²

15 300 m²


Vacancy

As of January 2018, Oslo office vacancy measured as floor space available now or within three months currently stands at approximately 570,000 m2 or 6.6 % of the total office stock. This is down 50 basis points since our last report in October, and follows our previous prediction that the overall Oslo office vacancy is downward trending. The vacancy in Oslo city centre are currently standing at 4.7 %.

We observe that the areas of City Centre west/Solli plass, City Centre east/Bjørvika and Økern have experienced larger declines in vacancy compared to the overall Oslo office stock. This is, in our view, the consequence of private tenants seeking central locations. At Økern, a few buildings have been taken off the market for re-development or demolition.

SupplyWe have increased our estimates for office space leaving the Oslo market in 2018 to 130,000 m2. Projects contributing to this are the complete demolition of Ruseløkkveien

26 in Vika, and a few larger residential conversion projects in the Oslo west fringe. Our estimates for the next few years are between 100,000 and 130,000 m2 per year; still high, but based on a steady growth in re-development projects. Combined with the relatively low construction activity (see Development for details) this is likely to bring vacancy downwards.

DemandThe demand for good office space in Oslo was healthy during 2017, and is expected to strengthen over the coming years. According to Statistics Norway, the change in total employment ended up 1.1 % in 2017, and is expected to follow this trend going forward. Furthermore, SpareBank 1 report increased optimism amongst business leaders in the region through their expectations barometer for 2018 implying that the demand for office space is likely to stay positive and stable over the next year.

With this in mind, we stay on course with our prediction that overall vacancy will

follow the downward trend in 2018 to 2020. In 2021 we expect to see some increase in overall vacancy as we expect new office space to enter the market in larger volumes. Displayed in figure 14 is the year-on-year forecast for the Oslo vacancy rate.

Vacancy riskWe measure vacancy risk as possible vacant office space within two years. This materialises itself through new office projects or re-developments with vacant space, or non-renegotiated ending leases. While the risk is generally low in all areas, we recognise some higher vacancy risk for Inner city west and the west fringe areas, as can be seen in figure 15. High vacancy risk is not unusual in areas where there is high development activity or large ending leases.


<15,5 %<12,5 %<10 %

<7,5 %<5 %<2,5 %

200

6

200

8

200

7

200

9

2010

2011

2012

2013

2014

2015

2021

E

2020

E

2017

2018

2019

E

2016

0

100 000

200 000

300 000

400 000

500 000

800 000

700 000

600 000

900 000

1 000 000Oslo Office Vacancy 2006-2021E

The columns show how vacancy changes due to demand. The forecast of new demand and supply are based on knowledge about specific office developments and the official estimates for employee growth.

Our forecast indicate a slight decrease in office vacancy in the coming years given today’s expectations of future demand and a relatively modest supply of new space until 2021.

Sources: Akershus EiendomVarious developers

Vacancy level by the start of the yearNet new office space addedChange in demand (absorbed space)

13

14

m² office space

Oslo Office Vacancy

This map shows office vacancy in the various areas of Oslo as of January 2018. Space counted is available at the latest by March 31.



Oslo Outer East

ØkernAlna-Ulven

Ryen

Inner City East

Helsfyr-Bryn

Inner City North

Majorstuen

Skøyen

Lysaker

Fornebu

Oslo Outer South

InnerCityWest


C B D11

.0 %

7.0

%

4.5

% 5.0

%

8.0

%

8.0

%

7.0

%

6.5

% 7.0

%

8.0

%

7.5

%

7.0

%

6.5

%

5.5

%

5.5

%

5.0

%

ForecastActual


15 Vacancy Risk 2018-2020

The map shows the risk of future vacancy within each sub-area of Oslo in the coming two years. The analysis is based on known volumes of office space entering the market during the period, either through new vacant buildings or because the tenant moves out. The analysis does not take into account the effects of tenants moving between sub-areas; it is solely a supply-side risk analysis.



Oslo Outer East

ØkernAlna-Ulven

Ryen

Inner City East

Helsfyr-Bryn

Inner City North

Majorstuen

Skøyen C B D

Lysaker

Fornebu

Oslo Outer South

InnerCityWest


High riskMedium riskLow risk


Development

NEW OFFICE CONSTRUCTIONMajor new office buildings announced since our last report are Schage Eiendom’s new office development “Skøyen Atrium III” of 17,500 m² located at Skøyen, and the next stage of the HasleLinje project at Økern, Karvesvingen 5, totaling 18,000 m². The latter project will become the new HQ of Atea once completed in 2020. In addition, Storebrand and Aspelin-Ramm have signed 30 % of their new development VIA (Ruseløkkveien 26), located in the prime Vika area, where completion is planned for 2021. For a complete list of started new developments in the period 2018-2021, see table 18.

OFFICE VOLUME FORECASTSFor 2018, we expect a total of 126,000 m² of new office space to enter the market, after a modest volume of 86,000 m² in 2017. For 2019, known new developments are currently at 78,000 m², and we expect this to rise to close to 110,000 m2. On the other hand, we expect demolition or conversion of office space to other use of approximately

120,000 m² per year in the period 2018-2020. Thus, the net new supply of office space is expected to remain low for the coming two years, as it has been over the previous years.

From the end of 2018, we forecast that the low vacancy will result in more new buildings being ordered, and we expect a greater volume of new supply from 2020 onwards. However, since our last report, we have decreased our new office completion estimate for 2020 by 25,000 m², down to 200,000 m², pushing some of the expected construction activity – especially in the CBD area – further out in time.

Additionally, we see many large tenants looking for office space, as several large office leases expire in the coming years. Thus, we believe the absorption of new space will increase steadily going forward. This is supported by falling unemployment rates, and companies’ improving expectations of expanding their number of employees,

as measured in Norges Bank’s business sentiment survey of Q1 2018.

CONSTRUCTION COSTS AND BACKLOGSGraph 20 shows Akershus Eiendom’s estimated turnkey cost for new office buildings in Oslo, which shows an increase during 2017, from NOK 20,000 to NOK 23,000. As of early 2018, we do not observe a continuation of this increase in construction costs, due to a decline in residential housing starts. Thus, our forecast is stable costs throughout 2018.

Graph 21 shows the order backlog for the Norwegian construction industry. The volume is at a new record high level, mostly due to the growth in residential construction. This is expected to change, as the sales of new homes has declined compared to 2016-17, and we expect that this will affect the volume of new projects going forward. For commercial construction, however, some growth can be expected, as pointed out.


16

17 Available land plots for office development in Oslo 2018

Potential size, floor space m²:



150 000 m²

25 000 m²

75 000 m²

10 000 m²

New buildings 2018New buildings 2019New buildings 2020–2021

Available now or within 4 yearsLong-term development potential, less certainty

Occ

up

ied

Vaca

nt

New Office Buildings 2018–2021

2018: 126.000 m²2019 (known): 78.000 m²2020 (known): 81.000 m²

The map shows the location, year of completion, leasing/vacancy situation and relative size of the ongoing, or in other ways confirmed, office construction projects in Oslo. The names are either the address, project name, or tenant name where the project has one major tenant.

Helsedirektoratet

SecuritasAtea

Trebygget ValleOmsorgsbygg

NAV - Fyrstikkalléen 1

Østensjøvn. 16

Bane Nor

DEG 6b

VIA - Ruseløkkvn.26

Drammensveien 147

Hoffsveien 9

Harbitz Torg

Nemko

Orkla

Diagonale Eufemia

!


New Major Oslo Office Projects 2018-2021

18


New Office Space

Completed new office space in Oslo (including Fornebu). Only certain new buildings is included in the 2018 figures.

WestEastCBDEstimate (all areas)

19

200

2

200

1

200

0

1999

1998

1997

1996

1995

200

4

200

6

200

8

200

3

200

5

200

7

200

9

2010

2011

2012

2013

2014

2015

2021

E

2020

E

2019

E

2018

E

2017

2016

0

50 000

100 000

150 000

200 000

250 000

300 000m2

Property/building Floor space m² Area Completion Developer

Hagaløkkveien 26 14 500 Asker 2018 Ferd Eiendom

Bøkkerveien 5 (Securitas) 12 000 Økern 2018 Höegh Eiendom

Drammensveien 149 19 500 Skøyen 2018 Orkla Eiendom

Dronning Eufemias gate 7 (Diagonale) 15 200 CBD East 2018 Hav Eiendom / Olav Thon

Philip Pedersens vei 11 6 300 Lysaker 2019 NCC

Vitaminveien 4 17 000 Nydalen 2018 Skanska

Grenseveien 80 8 000 Helsfyr-Bryn 2018 Bunde Eiendom

Valle - "Trebygget" 5 700 Helsfyr-Bryn 2018 NCC

Schweigaardsgate 33B 22 500 CBD East 2018 ROM Eiendom

Eufemia Bjørvika 21 000 CBD East 2019 Oslo S Utvikling

Harbitzalléen 3-7 30 000 Skøyen 2019 Møller Eiendom

Østensjøveien 16 11 000 Helsfyr/Bryn 2019 FRAM Eiendom

Fyrstikkalléen 1 37 000 Helsfyr 2020 Vedal

Freserveien 1 25 600 Inner city east 2020 OBOS Forretningsbygg

Drammensveien 147 17 500 Skøyen 2019 Schage Eiendom

Karvesvingen 5 18 000 Økern 2020 Höegh Eiendom

Lørenveien 65 19 500 Økern 2020 Skanska

VIA 45 000 CBD 2021 Storebrand / Aspelin Ramm


Value index for backlog

06

Q2

07

Q2

08

Q2

09

Q2

10 Q

2

11 Q

2

13 Q

2

14 Q

2

17 Q

2

16 Q

2

15 Q

2

12 Q

2

25

Order Backlog New Buildings Nationwide 2006–2017

Quarterly index

The graph shows the order back log for new buildings. The graph has been deflated by the total production index to remove effects of changes in building costs (basic component costs) and changes in margins to contractors

Source: Statistics Norway

National index, all new and rehab projects New residential buildings Other new buildings (mainly commercial)

21

Estimated future construction cost

Observed construction cost


Estimated Turnkey Cost

Akershus Eiendom’s official estimate of turnkey cost is based upon information from recent initiated projects and input from valuations.

20

Jan

06

Jul 0

6

Jan

07

Jul 0

7

Jan

08

Jul 0

8

Jan

09

Jul 0

9

Jan

10

Jul 1

0

Jan

11

Jul 1

1

Jul 1

2

Jan

12

Jan

13

Jul 1

3

Jul 1

8

Jul 1

7

Jan

18

Jan

17

Jul 1

6

Jan

16

Jul 1

5

Jan

15

Jul 1

4

Jan

14

8 000

10 000

14 000

12 000

16 000

18 000

22 000

20 000

24 000NOK / m2

375

275

300

325

350

250

200

150

225

175

125

100

75

50

30The Investment Market

The Investment Market

Norwegian Market PerformanceThe Norwegian market was very active in 2017, reaching NOK 90 billion (11 % up over 2016), the second highest volume ever recorded (only deals above NOK 50 million where a majority stake was transacted are included in the statistics). A record-high 331 transactions were recorded, a 17 % increase from the previous record of 283 transactions in 2016.

Foreign investors increased their presence in 2017, investing NOK 20 billion (22 % of total invested volume). This was a 47 % increase since 2016, and the second highest level ever recorded. In 2017, foreign investors divested NOK 8.5 billion, a decrease from the NOK 9.7 billion divested in 2016. Foreign investors have now been net buyers every year since 2012.

Measured by growth in transaction volume, office and logistics properties where the most popular assets in 2017. The office transaction volume increased 41 %, while logistics recorded the second highest

transaction volume since 2007. Residential properties and land-plots saw a 10 % increase in investment volumes, despite the residential prices cooling off during the year. The retail market remains at relatively high levels, despite a 26 % reduction in volume. The hotel market saw the lowest activity since 2013. The reduction in the retail and hotel market is a result of condensed, long-term ownership of assets and therefore a strained supply side and lack of high quality and larger assets.

The most active players in the Norwegian market in 2017 were the domestically based closed-ended funds. They acquired NOK 24.4 billion worth of real estate and divested NOK 9.9 billion. As the number of listed real estate companies in Norway is limited, the CEFs have served as an efficient channel for medium-sized investors seeking exposure towards the real estate market.

Oslo Market PerformanceThe Oslo market made up 51 % of the transaction volume, the highest level since

2011. The NOK 46.4 billion invested was up 48 % from 2016. The number of transactions increased 21 % to 115 from 95 in 2016. This is the highest number of transactions ever recorded.

Foreign investors were net buyers in Oslo in 2017 with a net inflow of NOK 3.1 billion, which is 13 % of the market, a slight increase from 2016. However, a total of NOK 6.2 billion was invested, up from 4.9 billion in 2016. The lower share of foreign investors in Oslo is not unusual, as the share of foreign investment in Oslo has been lower than for the total Norwegian market every year since 2013. The lower share of foreign investors appears to be a result of relatively few transactions in the prime segment of fully let central Oslo office properties.

FinancingThe Norwegian Central Bank has signaled an increase in the key policy rate toward the end of 2018, after keeping the rate unchanged at 0.5 % since April 2016. Bank margins decreased marginally at the beginning of


2018, after having risen steadily since 2015. While margins have decreased, interest rates have seen an increase of 40 to 50 basis points across the 3Y, 5Y, 7Y and 10Y SWAP rates since November 2017. Banks are also more inclined to vary margins based on the quality of the borrower and the asset compared to a couple of years ago. They also favor lower leverage with relatively lower margins than before, which should result in the overall leverage decreasing in the market.

While the banks are somewhat selective, the bond financing market is thriving. Real estate bond issuances increased 50 % in 2017, to NOK 36 billion. The investment banks setting up closed-ended funds have also increasingly issued junior bonds and other high yield bonds. The number of bond issuers has increased substantially both in 2017 and over the last five years. Pension funds and insurance companies remain the largest buyers of the bonds.

OutlookWe expect total 2018 investment volumes in the NOK 80-90 billion interval. The market activity has continued at the same pace in 2018 as observed in 2017. The prime yield estimate remains unchanged at 3.75 %, confirmed through several transactions in the 4th quarter.

However, we do expect to see upward pressure more than downward pressure on yield levels in 2018, especially if the interest rates continue to increase. The upward pressure on yields is likely to be stronger for Oslo fringe assets than for prime assets, as the most active investors in the fringe areas are more sensitive to margin increases than prime asset investors who generally operate with lower leverage. Furthermore, the yield gap between prime assets and the top fringe assets has been reduced to 60-75 basis points, which is low in a historical perspective. The forecast for the coming six months is thus for an unchanged prime yield level.

Despite the increasing interest rates, we expect that for the high quality, centrally located assets, constraint on the supply side persists. An increasing interest in Norwegian assets from investors all over the world, should also keep demand high. As the Nordic commercial real estate market (Norway, Sweden, Finland) in 2017 made up the third largest market in Europe measured in transaction volume, we observe that an increasing share of foreign investors are seeing the Nordics as part of their investment strategies. We thus expect the demand for high quality assets and continued search for returns to keep market activity high and yields relatively low.


200

6

200

8

200

5

200

7

200

9

2010

2011

2012

2017

2016

2014

2015

2013

0

20 000

40 000

60 000

80 000

120 000

100 000

NOK Million


Transaction Volume of Commercial Properties

Only deals larger than NOK 50 million are incuded in the graph. Transaction volume in 2016 was NOK ~80 billion. The transaction volume in 2017 amounted to NOK ~90 billion.

RemainingCommercial land plotsResidential projectsLogistics / industrial properties HotelsRetail propertiesOffice buildings

22


Transaction Yield10Y SWAP10Y Gov. Bond

Interest Rates and Prime Transaction Yields 2002–2018

The curve indicates the 10-year government bond rate and the 10-year SWAP rate. The triangles represent time and sales yield for large Oslo office transactions since Jan 2002.

23

Jan

02

Jul 0

2Ja

n 0

3 Ju

l 03

Jan

04

Jul 0

4Ja

n 0

5Ju

l 05

Jan

06

Jul 0

6Ja

n 0

7Ju

l 07

Jan

08

Jul 0

8Ja

n 0

9Ju

l 09

Jan

10

Jul 1

0Ja

n 11

Jul 1

1Ja

n 12

Jul 1

2

Jul 1

3

Jul 1

4

Jul 1

5

Jul 1

6

Jul 1

7Ja

n 18

Jan

17

Jan

14

Jan

15

Jan

16

Jan

13

0.50 %

1.00 %

1.50 %

2.00 %

2.50 %

3.50 %

3.00 %

4.50 %

4.00 %

5.00 %

5.50 %

6.50 %

6.00 %

8.00 %

7.50 %

7.00 %


Sellers and Buyers of Commercial Property 2016-2017

24

Oslo Office Transactions

25

Property/location Floor space m²

Price NOK million

Seller Buyer

Eikenga 31-33 11 000 150 Hero Eiendom Centennial Eiendom

Sommerrogaten 13-15 7 304 320 Starwood Capital Nordea Liv

Alf Bjerckes vei 10 13 000 300 Closed-ended fund by Arctic Securities Ragde Eiendom

Mølleparken 4 19 500 440 Søylen Eiendom, et. al. Closed-ended fund by Vika Project Finance

Stålfjæra 24 5 646 n.a. Starwood Capital Group Ragde Eiendom

Dronningens gate 13 15 855 n.a. Starwood Capital Group Ragde Eiendom

Fornebuveien 7-13 11 833 n.a. Closed-ended fund by Pareto Securities Joh. Johannson

Ryenstubben 10-12 13 819 409 Gunnar Karlsen Closed-ended fund by Pareto Securities

Victoriapassasjen 4 500 321 Sabinum AS Artmax AB

Wergelandsveien 15 3 421 n.a. Utdanningsforbundet Aberdeen Standard Investments

Rosenholmveien 22 6 200 100 Einar Gert von Hirsch Tress Eiendom

Professor Kohts vei 9 44 241 2 225 Storebrand Livsforsikring Closed-ended fund by Arctic Securities

Henrik Ibsens gate 48 6 022 475 Den Amerikanske Ambasade Fredensborg Eiendom

Middelthuns gate 29 21 606 1 270 Entra Closed-ended fund by NRP

Helsfyr Puls 9 795 n.a. Bundegruppen Oslo Areal

Lørenveien 37 8 000 n.a. Closed-ended fund by Colliers Closed-ended fund by Clarksons-Platou

Gaustadalléen 21 - Hus 5 12 497 n.a. Closed-ended fund by Arctic Securities Closed-ended fund by NRP

Pontoppidans gate 7 - Trikkestallen 9 000 295 Closed-ended fund by Arctic Securities Beringer Finance/Realkapital

Akersveien 26 16 763 n.a. Closed-ended fund by Clarksons-Platou Canica

Philip Pedersens vei 1 22 682 n.a. Closed-ended fund by Clarksons-Platou Union

Ulvenveien 111 6 800 65 OBOS Forretningsbygg Fortuna Estate

Cort Adelers gate 33 8 191 725 Winta Eiendom AS Deka Immobilien

Nydalen Allé 35 14 719 595 Closed-ended fund by NRP Closed-ended fund by Arctic Securities

2017

2016

Sellers Buyers

8 %

26 %

9 %

5 %21 %

5 %

17 %

4 %

2 %

22 %

7 %

24 %

7 %

6 %27 %

1 %

2 %1 %

3 %

36 %

3 %

8 %4 %

11 %

11 %

2 %9 %1 %2 %

13 %

7 %

6 %

30 %

7 %

12 %

2 %1 %

12 %

4 %12 %

7 %


Listed property fundsProperty companiesInsurance/Pension fundsProperty fundsClosed-end fundsOwner occupied

Private investorsGovernmentHotel operator/OwnerForeign investorsRemaining

34Regional Property Markets

Regional Property Markets

BergenTotaling at NOK 5.5 billion, the Bergen transaction market in 2017 had a solid year. The yield levels on good office property remains at 4.75 – 5.5 % while there have been observed a downward pressure on good logistic property in the northern fringe.

The office rent levels in Bergen have been some of the least volatile in Norway, a trend that is expected to continue throughout 2018. Rent levels for prime CBD is still at NOK 2,800, while the lowest rents are found in Fyllingsdalen and Sandsli respectively.

The office vacancy in the region is still at 10 %, fueled by the volume of new office space entering the region.

TrondheimThe transaction volume in Trondheim reached NOK 6.1 billion in 2017 compared to the volume of NOK 4.3 billion in 2016. Prime yield for the best objects is 4.75 %. The sale of Søndre gt. 4-10 from Sparebank 1 SNM to E.C. Dahls Eiendom AS on a 15 years

leaseback contract for approximately NOK 755 million was one of the most prominent transactions in the region last year.

Rent levels for office in Trondheim CBD are in a modestly increasing trend, and are now above NOK 2,000 for new buildings and rehabs. Prices in the fringe zones remain stable at current levels.

Office vacancy has increased throughout the year and is now close to 9.5 % for Trondheim as a whole. The highest office vacancy levels are found in the southern fringe areas of Sluppen, Fossegrenda and Tiller where vacancy lie in the 15-20 % interval.

StavangerThe Stavanger transaction market saw a recurring year with high activity and demand for good property. The transaction volume ended at NOK 5.5 billion in 2017, up from the NOK 3.9 billion in 2016. The volume is mainly driven by larger deals in the CBD area, and the sale of car dealerships

located at Forus. The interest in the office property market in the city center have been high.

The prime yield has felt some downwards pressure as there have been observed transactions down towards 4.5 % in the city CBD. For most transactions in the rest of the region, the normal yield levels continue to stay in the 7-8 % interval.

The region is still experiencing high vacancy, and the overall office vacancy is measured to be approximately 13.5 %. Stavanger city center have 7.1 % vacancy, while Forus show small signs of recovery at 22 % vacancy.

Rent levels in the region are under pressure as vacancy continue to stay at high levels. While the rent levels in the city center and Tananger remain unchanged, the Forus rents are down NOK 50 for prime office space and NOK 100 for normal office space per m2, to NOK 1,450 and NOK 1,000 respectively.


BergenTrondheimStavanger - CBD

Stavanger - Oil (Forus)KristiansandTromsø

Source: Dagens Næringsliv

Regional Office Rents 1996-2017

Nominal NOK

27

1996

H1

1997

H1

1998

H1

1999

H1

200

0 H

1

200

1 H

1

200

2 H

1

200

3 H

1

200

4 H

1

200

5 H

1

200

6 H

1

200

7 H

1

200

8 H

1

200

9 H

1

2010

H1

2011

H1

2012

H1

400

600

800

1 000

1 600

1 400

1 200

2 000

1 800

NOK/m2/year

2017

H2

2016

H2

2015

H2

2014

H2

2013

H2

2013

H1

Source: Dagens Næringsliv

Year-End Office Rents 2006–2017

26 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Bergen 1225 1400 1550 1475 1475 1475 1475 1475 1475 1505 1545 1565

Trondheim 1350 1650 1650 1600 1600 1650 1700 1700 1750 1654 1631 1711

Stavanger - CBD 1500 1650 1700 1600 1600 1700 1900 1950 2000 1894 1755 1755

Stavanger - Oil 1200 1350 1400 1300 1300 1350 1450 1525 1450 1271 1144 1042

Kristiansand 1350 1525 1550 1425 1400 1400 1375 1400 1400 1400 1300 1325

Tromsø 1000 1300 1300 1300 1450 1450 1500 1674 1650 1770 1937 1937


Frin

ge C

BD

Frin

ge C

BD

CB

D

CB

D

San

dsl

i

Fylli

ngs

dal

en

Sou

th

East

CB

D

Foru

s

Tan

ange

r

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

2 200

2 400

2 600

2 800Office rent, NOK per m2

Bergen Trondheim Stavanger

Regional Office Vacancy 2003–2018

Office rents January 2018

The columns show lower and higher rents for different areas within the three cities.

Sources: Eiendomsmegler1 Midt-NorgeEiendomsmegler1 RogalandKyte Eiendom

Best rent levels Lower rent levels

28

29

0 %

2 %

4 %

6 %

8 %

10 %

14 %

12 %

BergenTrondheimStavanger

Sources: Eiendomsmegler1 Midt-NorgeEiendomsmegler1 RogalandKyte Eiendom

03

Oct

04

Feb

05

Jan

05

Sep

t

06

Feb

06

Sep

t

07

Jan

07

Au

g

08

Jan

08

Au

g

09

Jan

09

Au

g

10 J

an

10 A

ug

11 J

an

11 A

ug

12 J

an

12 A

ug

18 J

an

17 J

an

14 J

an

15 J

an

16 J

an

14 A

ug

15 A

ug

16 A

ug

17 A

ug

13 A

ug

13 J

an


Leasing

Sales

30

31

Property / location Floor space m² Rent / m2 Lease Tenant OwnerStavangerLaberget 5 500 Confidential Bouvet Oslo areal

Forusparken 2 2 000 Confidential KPMG 2020 Park AS

Byfjordparken, Stavanger Nord 4 000 Confidential BI GMC eiendom AS

TrondheimPowerhouse 4 800 2 050 Teekay Entra

Dronningens gate 10 950 1 900 HK Reklame E.C. Dahls Eiendom

Bergen

Property / location Floor space m2 Price, MNOK Buyer SellerStavangerNorges Bank (Domkirkeplassen 3) 3 500 85 Camar Eiendom AS Stavanger Kommune

Pond Hotel (Koppholen 17) N/A 100 Stordalen Base Property

Sunde bygget (Løkkeveien 99) 6 130 180 K2 & Camar Thorleif Sunde

Hotell Victoria (Skansegata 1) N/A 143 Glastad Holding Cartella real estate

Bilportefølje, Forus (Fabrikkveien 36 - 41) 20 000 475 Castelar Miklagard (Ertevåg og Øgreid)

Ankerkvartalet 28 000 Confidential Uref II (Union) Øgreid Eiendom

Statens Hus 20 500 780 Storebrand Eiendomsfond Norge KS NRP Syndicate

TrondheimWestermannsveita 4 5 500 80 E.C. Dahls Eiendom AS Telenor Pensjonskasse

Tungasletta 2 14 800 180 Entra Kaare Arnstad og Hasle Gjerde

Søndre gate 4 - 10 18 100 755 E.C. Dahls Eiendom AS Sparebank 1 SMN

Trondheim Innovation Center 29 000 760 Clarkson Platou Syndicate Fortin/Anvil

Nordre gate 1 - 3 og 15 N/A 97 Aberdeen Westerlund

BergenNøstegaten 28 10 500 130 Bergen Kommune Posten

Strandgaten 9 2 200 70 Joa Gruppen Odfjell Eiendom

Kanalveien 52B 20 000 240 Bergen Kommune Posten Norge

Bradbenken 1 10 700 400 Aberdeen Property Nordic Fund 1 B Friele og Sønner AS

Sandslihaugen 10 7 365 94 Midgard Gruppen Sandsli Holding

Deler av Brann Stadion Conv. to res. 265 Sammen Brann

Conrad Mohrs veg 15 Conv. to res. / office 215 Bob / Backer BIR

Hjalmar Brantings vei 2 Conv. to res. 100 Axer Eiendom og Rema Etablering Knudsen Eiendomsselskap AS

New Building / Rehabilitation32

Floor space m² Completion Developer TenantTrondheimPrinsensgate 39 (rehabilitation) 2 374 May-18 E.C.Dalhs Eiendom AtB

39

Source: Eiendomsmegler 1 Midt-NorgeEiendomsmegler 1 RogalandKyte Næringsmegler

42International Office Markets

International Office Markets

NORDIC OFFICE MARKETSThe Nordic countries are in a strong business cycle, rental levels have been moving upwards and vacancy rates downwards, and the forecasts suggest that the positive trend will continue.

The supply of office space in Stockholm has remained low, with the vacancy rate in the CBD standing at a record low level of 2.6 %, while the overall vacancy stands at 7.7 %. A still favorable economic environment, robust demand and scarce supply have continued to exert upward pressure on rents, primarily in central Stockholm, but also in other popular submarkets. Prime rent has increased by almost 13 % during 2017 and currently stands at SEK 7,000 per m² p.a., while requested rents for the very best CBD premises stands at SEK 9,000 per m² p.a. The investment market has remained very healthy during 2017. The total transaction volume in Stockholm during H2 2017 amounted to SEK 25.7 billion, equivalent to 38 % of the total transaction volume in Sweden. The prime yield estimate remains at 3.5 %.

In Copenhagen, prime office properties are high in demand, and demand in secondary locations is rising. Serviced office solutions are growing, and take-up volumes may increase. The vacancy rate in greater Copenhagen stands at 9.5 %, however, the vacancy in Copenhagen Proper currently stands at 5.7 %. Prime rents are expected to increase as declining vacancy and increasing construction costs are expected to put upward pressure on rents. Rents in the CBD have increased slightly and is currently in interval DKK 1,400 – 1,900 per m² p.a. 2017 was yet another record year in the transaction market. Prime properties are still attracting the majority of investor demand, but interest in secondary properties that offer good risk-adjusted returns has picked up. Prime yield estimate is currently 3.6 %, down 0.4 %-points since our previous report.

For the Helsinki office market, positive momentum has continued during H2 2017, as the improving Finnish economy further energizes the demand side. The vacancy rate appears to have passed its peak, as

total vacancy at year-end was 14.1 %, down 0.6 %-points since our previous report, while the CBD vacancy stands at 5.6 %. Also, rents see some upward pressure. Prime rental levels have increased slightly during H2 while most submarkets are still awaiting an upturn. Prime rent currently stands at €396, up from €384 in H1 2017. The Finnish real estate investment market remained exceptionally active during 2017 and the total transaction volume ended at €10 billion. The prime yield estimate is down 40 basis points over the last 12 months, and currently stands at 3.6 %.

EUROPEAN OFFICE MARKETSThe Jones Lang LaSalle “Office Clock” describes the European market situation by a quarterly plot for the movement in prime rents for major cities. The clock illustrates both direction and speed of change for the different cities over 6 months. The rental growth in Stockholm, Copenhagen, and Helsinki is expected to slow down. Oslo is currently at the 07:00 position, representing an improvement in rental growth during the end of 2017.

International Office Markets

Budapest, Copenhagen, Edinburgh, Munich, Prague, Stockholm

43

Source: JLLAkershus Eiendom

Jones Lang LaSalle Office Property Clock Main European Cities Q4, 2017

Sources: JLLAkershus Eiendom

Key Information Nordic Cities Q4 2017

33

34

Amsterdam, Barcelona, Helsinki, Lisbon, Madrid, Rome, St. Petersburg

Athens

Bucharest, Kiev, Moscow, Warsaw, Zurich

Berlin, Luxembourg

Milan

Frankfurt, ManchesterHamburg, Stuttgart

Dublin

Brussels

Lyon, Oslo

Paris CBDCologne, Dusseldorf

Rental Growth Slowing

Rents Falling

Rental Growth

Accelerating

Rents Bottoming Out

London City

London WE

Geneva

Istanbul

Key Data Oslo Stockholm Copenhagen Helsinki Gothenburg

Prime Yield (%) (CBD) 3.75 3.50 3.60 3.60 4.25

Rest of Inner City (%) 4.25-4.75 3.75 4.50 4.75 4.75

Prime Rent (Local Currency / Euro / m²) (CBD) 4 300 / 445 7 000 / 707 1 800 / 242 396 3 200 / 323

Submarkets (Local Currency / Euro / m²) 2 700 / 280 4 600 / 465 1 100-1 650 / 148-222 306 2 600 / 263

Completions - 2017 (m²) (Total) 91 300 95 200 395 000 54 000 17 800



Vacancy rate (%) (Total) 6.6 7.7 9.5 14.1 5.1


1997

1998

1999

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2017

2016

2015

2013

2014

2012

0

100

200

300

400

600

500

700

1997

1998

1999

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2017

2016

2015

2013

2014

2012

0 %

4 %

2 %

6 %

8 %

12 %

10 %

14 %

18 %

16 %

20 %

€/m2/year

Nordic Office Rent Development

Nordic Vacancy Development

Oslo vacancy rateHelsinki vacancy rateStockholm vacancy rate Copenhagen vacancy rate

Oslo prime rentHelsinki prime rentStockholm prime rentCopenhagen prime rent



35

36


1997

1998

1999

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2017

2016

2015

2013

2014

2012

3.50 %

4.00 %

4.50 %

5.00 %

5.50 %

6.00 %

7.00 %

6.50 %

7.50 %Nordic Yield Development


Oslo prime yieldHelsinki prime yieldStockholm prime yieldCopenhagen prime yield

37

38

1997

1998

1999

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2017

2016

2015

2013

2014

2012

0

2000

4000

6000

8000

12 000

10 000

20 000

18 000

16 000

14 000

€/m2


Oslo valueHelsinki valueStockholm valueCopenhagen value

Prime Value Index

Prime rent/prime yield

46The Retail Market

The Retail Market

StatusThe consumer confidence index (CCI) was strong during 2017, a trend that has continued in 2018. Retail sales volume (excluding motor vehicles) is up 2.2 % year-on-year by January 2018 and the long-term trend in retail sales has shown a relatively stable increase since autumn 2016. Going forward, retail spending is expected to increase based on solid employment growth, rising real wages and a continued strong consumer confidence.

The retail market is currently in a phase of change, where the retailers are consolidating and creating new distribution strategies. The e-commerce market in Norway continues to grow rapidly, and the future of retail will be a combination of offline and online.

The shopping centre marketAccording to Kvarud Analyse, the 60 largest shopping centres in Norway experienced a turnover growth of approximately 1.3 % in 2017, which is the lowest growth rate in 20

years. The low growth can be explained by the fact that online sales continued to gain market share in the Norwegian market. In addition, the Norwegian consumer has changed, and the future of retail is about experiences. Shopping centres are currently experiencing a trend where F&B and entertainment replace traditional retailers. The centres able to adapt to the market change, as well as to take advantage of e-commerce, are predicted to be the future winners.

The Oslo high-street marketThe retail high-street leasing activity remains low globally. In the short term, the supply of space in this segment is higher than the demand. Prime rent levels remain stable at NOK 23,500 per m², but the market is currently perceived as “tenant friendly”. However, due to the low activity in the leasing market, conclusive evidence of rents decreasing does not exist. Rent levels for secondary locations are still expected to increase in the coming couple of years, as new parts of the Oslo city centre are

developed. High-street retail vacancy in the prime area is still close to zero.

The retail investment marketThe Norwegian transaction market still has a solid demand for retail properties, but the 2017 volume is lower compared to the previous two years, with close to 70 retail property transactions and approximately NOK 13 billion; this is about 15 % of the total transaction volume for 2017. There were few regular, larger shopping centres sold. About 50 % of the retail assets acquired in 2017 were big-box retail, which accounted to approximately 35 % of the total retail volume.

47The Retail Market

01

Q1

02

Q1

03

Q1

04

Q1

05

Q1

06

Q1

07

Q1

08

Q1

09

Q1

10 Q

1

11 Q

1

16 Q

1

17 Q

1

15 Q

1

14 Q

1

13 Q

1

12 Q

1

0

200 000

400 000

600 000

800 000

1 000 000m2/year

Norwegian Retail Volume Index 2005–2018

Season adjusted volume index, 2010=100

Retail sales has shown a relatively stable increase since autumn 2016 and is up 2.2 % year-on-year.

Retail Construction Q1 2001–Q4 2017

Annual 4 quarter moving average.

Permitted and started retail construction in both Norway as a whole and Oslo is increasing, while completed are decreasing.

39

40


Permitted NorwayStarted NorwayCompleted Norway

Permitted Greater OsloStarted Greater OsloCompleted Greater Oslo

70

80

-8 %

-5 %

90 -3 %

100 0 %

110 3 %

120 5 %

140

130

10 %

8 %

Retail volume index Retail year-on-year growth

Jan

05

Jul 0

5

Jan

06

Jul 0

6

Jan

07

Jul 0

7

Jan

08

Jul 0

8

Jan

09

Jul 0

9

Jan

10

Jul 1

0

Jan

11

Jul 1

1

Jan

12

Jul 1

2

Jan

13

Jan

14

Jul 1

3

Jan

18

Jan

17

Jul 1

7

Jul 1

6

Jul 1

5

Jan

16

Jan

15

Jul 1

4


Retail year-on-year growthRetail volume index

48The Retail Market

Source: Akershus Eiendom/JLL

Source: Opinion AS

Prime Rent for Unit Shops Oslo, Karl Johans Gate 2000-2018

Prime rents for unit shops stable at 23,500 per m²

41

CCI Norway 2014-2018 YTD

Consumer confidence fell in February, but is still strong and points to solid consumption growth going forward

42

00

Q1

01

Q1

02

Q1

03

Q1

04

Q1

05

Q1

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Q1

08

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0

10 000

15 000

5 000

20 000

30 000

25 000

m2/year

Feb

20

14

Ap

r 20

14

Jun

2014

Au

g 20

14

Oct

20

14

Dec

20

14

Feb

20

15

Ap

r 20

15

Jun

2015

Au

g 20

15

Oct

20

15

Dec

20

15

Au

g 20

16

Feb

20

18

Dec

20

16

Feb

20

17

Ap

r 20

17

Jun

2017

Au

g 20

17

Dec

20

17

Oct

20

16

Jun

2016

Ap

r 20

16

Feb

20

16

-15

-5

0

-10

5

15

10

Retail Rents in Bogstadveien / Hegdehaugsveien

44


20 000 +16-20 00012-16 0008-12 000

5-8 0003-5 000-3 000

Retail Rents in the Karl Johans Gate Area

43


20 000 +16-20 00012-16 0008-12 000

5-8 0003-5 000-3 000

50The Hotel Market

The Hotel Market

NorwayThe strong hotel market performance in 2015 and 2016 continued in 2017, driven by growth in both the average daily rates (up 4.7 % to NOK 946) and the occupancy rate (up 2.8 % to 56 %). As a result, RevPAR increased 7.6 % in 2017, and stands at NOK 529. Total hotel revenue amounted to NOK 14.7 billion, a 7 % increase over 2016. 2017 saw an 8.2 % increase in business-related guest nights, which accounted for 42 % of total guest nights, while leisure-related guest nights remained largely flat. In 2017, the domestic visitors (72 % of the total market) recorded a 4.4 %, while foreign guest nights decreased 0.6 %.

OsloIn 2017, RevPAR was up 11.8 % to NOK 741, as the occupancy rate (OCC) increased with 6.3 % to 73 % and the average daily rate (ADR) increased 5.2 % to NOK 1,014. The growth was fuelled by an 8.8 % growth in domestic guest nights (62 % of total market), as foreign guest nights decreased 3.9 %. Business-related guest nights (42 %

of market) increased 5.5 %, while leisure-related guest nights increased 2.4 %. The growth in total guest nights of 3.6 %, resulted in total hotel revenue reaching NOK 3.3 billion (up 8.2 % over 2016). Oslo remains the largest market in Norway with a 22.7 % market share.

BergenRevPAR decreased 5.7 % to NOK 624 in 2017, following an 8.4 % OCC decrease to 62 %. The ADR increased 3.0 % to 1,008. The decrease in the OCC follows a 16.7 % increase in available rooms, while total guest nights grew 6.8 %. This follows an 11 % increase in domestic guest nights, while foreign guest nights grew only marginally by 0.7 %. The leisure and business markets grew substantially, at 11.8 % and 10.3 %, respectively. The Bergen hotel revenue in 2017 was NOK 1.26 billion, an 8.6 % total market share.

TrondheimIn 2017, RevPAR increased 12 % to NOK 597. The ADR grew 7.2 % to NOK 895, while

the OCC increased 4.4 % to 67 %. This followed a 1.3 % increase in total guest nights, coupled with a decrease in available rooms of 4.5 % due to Britannia Hotel being renovated. The business-related guest nights increased 23.3 %, while leisure decreased 17.3 %. Foreign guest nights (15 % of total) decreased 6.6 %, while domestic guest nights increased 2.7 %. The Trondheim hotel revenue in 2017 was NOK 706 million, a 4.8 % total market share.

StavangerStavanger saw a 6.8 % increase in RevPAR in 2017, driven by a 7.3 % increase in the OCC. The ADR decreased 0.4 %. While total guest nights decreased 1.2 %, room capacity decreased by 9.1 % as Radisson Blu Atlantic Hotel was closed for refurbishment. Leisure-related guest nights decreased 12 %, while business-related guest nights grew 9.2 %. Foreign guest nights decreased 5.3 %, and domestic increased 0.2 %. The Stavanger hotel revenue in 2017 was NOK 493 million, a 3.4 % total market share.

51The Hotel Market

03

Jan

03

Jan

04

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04

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05

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06

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07

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an10

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an11

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an12

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an

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an

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an

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an

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an

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an

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an14

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13 J

an13

Jan

0

200

400

600

800

1 200

1 000

1 600

1 400

Domestic guests Foreign guests

OsloNorway

No. of guest nights per month in thousands (1 000)


0

200

300

100

400

600

500

700

900

800

1 100

1 000

RevPAR


Volume of Guest Nights in Norwegian Hotels 2003–2017

The graph shows the split between the volume of foreign and domestic guest nights in all hotels of Norway. Figures are seasonally adjusted.

Real RevPAR 2003–2017

The graph shows the development in real RevPAR in today's values. All figures are seasonally adjusted.

45

46

52The Hotel Market

Hotel Construction 2001–2017

Permitted and started hotel floor space for Norway and Oslo decreased in 2017 following several strong years. Completed space increased substantially on a national level following the spike in building permits in previous years. Completed space in Oslo also saw an increase, although lower than would be expected considering permitted and started space regiestered during the past 18 months.

47

13 Q

1

14 Q

1

01

Q1

02

Q1

03

Q1

04

Q1

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06

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1

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1



Permitted Greater OsloStarted Greater OsloCompleted Oslo

0

50 000

100 000

150 000

200 000

250 000m2/year

Hotel Transactions Since Autumn 2017 Report

48

Property/location Rooms Price NOK million

Seller Buyer

Comfort Hotel Ringerike, Hønefoss 82 n.a. Klækken Hotell, U E Carlsen AS Tronrud Eiendom

Gaustablikk Høyfjellshotell, Rjukan 91 n.a. Vätterledens Invest Svartdal family

Hotel Victoria, Stavanger 107 n.a. Catella Real Estate Glastad Holding

Hummeren Hotel, Tananger - Stavanger 30 n.a. Camar, Verket Investering, Svein Strøm Invest (91 %) Alto Holding (91 %)

Norrøna Hotell, Bodø 100 n.a. Stadssalg Corponor

Portfolio of four hotels 524 750 Strawberry Properties Midstar

- Clarion Collection Hotell Tollboden, Drammen 127 Strawberry Properties Midstar

- Clarion Hotel Ernst, Kristiansand 200 Strawberry Properties Midstar

- Clarion Collection Hotel With, Tromsø 76 Strawberry Properties Midstar

- Clarion Collection Hotel Aurora, Tromsø 121 Strawberry Properties Midstar

54The Logistics Market

The Logistics Market

Since our previous report published in autumn 2017, we have not changed our view on Greater Oslo logistics rent levels, prime rent still stands at 1,200 NOK/m² per year. Observed rent levels are high from Berger to Vinterbro, as these hubs are very popular. Their closeness to effective intersections with the main highway E6, short driving distance to Oslo, and the availability of vacant land plots, make these hubs a good alternative to the relatively fully developed area around the Alnabru national cross dock terminal (Alna/Nyland).

2017 was a year with very high activity, in the leasing market where approximately 145 000 m² entered the market. Going forward, completion of warehouses will decline from current levels. Our research shows that there will be approximately 25 000 m² and 69 000 m² entering the market in 2018 and 2019. Figures for 2019 can still change since construction time for a warehouse is approximately 12 months.

An interesting aspect of the logistics real estate market going forward are the effects imposed by the substantial growth in e-commerce. We have still yet to see the full impact this will have on the demand for warehouses/distribution facilities, but we are currently in a phase where the traditional supply chain is being challenged by the consumers’ changing way of shopping. We expect to see an increase in both construction of, as well as investment activity in, the segment because of this.

The vacancy in the greater Oslo region measured as floor space available now or within 3 months, stands at 3 %, down one percentage point since our previous report. All regions have experienced reduction in vacancy and the vacancy rates for the northern, southern, western regions are 3 %, 4.7 % and 7.0 %, respectively. The vacancy rate for space within the city limits is 1.5 %.

The activity in the transaction market has been high during 2017 and we have registered 45 + transactions with a total

volume of more than NOK 10.3 billion which also includes land for logistics and industrial purposes. Since our previous report, Sanitetveien 1 at Lahaugmoen has been sold, and Aberdeen Property Investors has acquired Bølerveien 65 and 61 located at Berger; the latter are two different transactions with Wittusen & Jensen and Skanska Norge AS as the tenants. At the same time a closed-ended fund set up by Carnegie has acquired Brennaveien 20B located at Skytta, a closed-ended fund set up by Arctic Securities has acquired a warehouse in Rakkestad with Continental Tires as the tenant. The latter has also acquired a property located in Lier with Kid Interiør as the tenant.

Based on recent market activity, we have kept our prime yield estimate unchanged; it stands at 5.0 % for a 10-year investment grade property. The yield estimate is relevant for properties within the prime and secondary areas, from Berger to Vinterbro.


Rent Levels March 2017

49

Other Oslo

Groruddalen

Oslo West Other

Vestby

Regnbuen /Berghagan

Lillestrøm

Berger

Kløfta

Gardemoen

Ski


Rent NOK/m2:Normal - high standard/ Top-standard and new build

1 000–1 200800–1 000700–800 –750


01

Q1

02

Q1

03

Q1

04

Q1

05

Q1

06

Q1

07

Q1

08

Q1

09

Q1

10 Q

1

11 Q

1

12 Q

1

0

200 000

400 000

600 000

800 000

1 400 000

1 600 000

1 200 000

1 000 000

1 800 000m2/year

01

Q1

02

Q1

03

Q1

04

Q1

05

Q1

06

Q1

07

Q1

08

Q1

09

Q1

10 Q

1

11 Q

1

12 Q

1

13 Q

1

14 Q

1

15 Q

1

18 Q

1

17 Q

1

16 Q

1

0

200

400

600

800

1 200

1 000

1 400NOK/m2/year

17 Q

1

16 Q

1

15 Q

1

13 Q

1

14 Q

1


Logistics Construction 2001–2017

Annualized 4 quarter moving average.

Completed projects in Greater Oslo is somewhat down over the past two quarters

51

Prime Rent for Warehouse/Logistics

Greater Oslo region.

Prime rent, seen in the central parts of Groruddalen close to the Alnabru rail terminal, is at NOK 1 200 per m²


50


Permitted Greater OsloStarted Greater OsloCompleted Greater Oslo

58The Residential Market

The Residential Market

Residential pricesThe Norwegian residential prices reached a peak in April 2017, and between April and December 2017, the average of all residential prices dropped by 6.1 %, according to Real Estate Norway. In the same period, residential prices in Oslo decreased by 11.2 %. However, the price reduction may have been brief, as prices have risen 3.1 % and 4.1 % for Norway and Oslo, respectively, during the two first months of 2018. Seasonally adjusted, this amounts to a marginal rise.

The residential price movements in the largest cities has been rather similar over the last year, with the exception of Oslo, which has the highest y-o-y decrease with 9.1 % measured February to February. Trondheim, Bergen and Tromsø experienced a decrease of about 2 - 3 %, while the prices in Stavanger and Kristiansand have been rather unchanged.

According to ECON Nye Boliger, as of February 2018, the average price for new

dwellings in Norway is NOK 52,200 per m² (7.2 % higher than at February 2017). Oslo has the highest prices of NOK 79,700 per m², Stavanger is at NOK 57,700 per m², while Bergen, Trondheim and Tromsø have average prices between NOK 54,000 - 57,000 per m².

According to Real Estate Norway, 86,627 existing homes were sold in Norway in 2017, which is about the same level as last year. Apartment units accounted for 55 % of the sales volume. As of February 2018, 13,129 units are sold, which is 5.8 % more than same period in 2017. When it comes to new homes, however, the sales volume for the two month-period ending February is 18 % lower than for the same period last year (ECON Nye Boliger).

In January 2017, the banks were forced by the Norwegian Financial Supervisory Authority to tighten their credit policies in order to dampen the price growth. In March 2018, the Authority proposed new home loan regulations applicable from

July 2018, which will remove some special limitations for Oslo and establish common loan rules for the whole country.

Residential constructionThe residential construction figures are still at high levels, and the number of residential units under construction increased by 4.5 % during 2017. However, the figure reached a peak in July 2017 and has since then decreased by 3 %. As the sales volume of new dwellings has continued to decrease, new construction volume is expected to decrease further, at least by 15 %. The volume of completed residential units has remained relatively stable since the beginning of 2014, at just below 30,000 units per year. In 2017, this number increased to 31,500 units, and it is likely to rise to more than 35,000 by early 2019, due to the high volume under construction.

59The Residential Market

-10 000 -10 %

0 %

10 %

20 %

30 %

0

10 000

20 000

30 000

40 000 40 %Average sales price, NOK/m2 % annual price change

Jan

05

Jan

04

Jul 0

5

Jul 0

4

Jan

06

Jul 0

6

Jan

07

Jul 0

7

Jan

08

Jul 0

8

Jan

09

Jul 0

9

Jan

10

Jul 1

0

Jan

11

Jul 1

1

Jan

12

Jul 1

2

Jan

18

Jan

17

Jan

16

Jul 1

3

Jul 1

4

Jul 1

5

Jan

13

Jan

14

Jan

15

200

8

200

9

2010

2011

2013

2016

2018

2017

2015

2014

2012

0

5 000

10 000

15 000

20 000

25 000

30 000

40 000

35 000

50 000

45 000

Volume of residential units

Sources: Eiendom Norge Finn.no Eiendomsverdi

Residential Prices 2004–2018

Nominal values

Residential prices decreased by an annual 2,3 % from February 2017 to February 2018.

Year-on-year change, by month, %Average residential price NOK/m²

52


Residential units under construction Completed residential units, last 12 months

Residential Construction in Norway 2008–2018

Units under contstruction increased by 4.5 % and completed dwellings increased by 7.5 % during 2017.

53

61Definitions

Area definitions

Abbreviations

Taxes and depreciation

BTA Gross areaBRA Usable areaP-rom Living area – residentialBYA Foot print of the building

NAV Norwegian Labour and Welfare AgencyCBD Central Business DistrictCPI Consumer Price IndexNOK Norwegian KroneSSB Statistics Norway

Depreciation Office buildings 2 % Warehouse/industrial 4 % Shopping centres 2 % Hotels 4 % Investments 10 %Document tax (stamp duty) 2.5 % of transaction valueProperty tax Depends on the county, many currently have a zero rate.

Definitions

62Akershus Eiendom

Akershus Eiendom AS is an independent property advisor focusing on commercial property; offices, warehouse facilities, shops/shopping centres, hotels, land, and related types of property. Akershus Eiendom advises its clients on sales, leasing, development, research, valuations and other areas of commercial property business. Akershus Eiendom has during the past five years handled sales transactions for properties of a total value of more than NOK 57,5 billion, and has handled leasing of more than 700 000 m² of office space.

Akershus Eiendom is associated with Kyte Næringsmegling in Bergen and JLL internationally.

Akershus Eiendom AS

Manager Petter Nylend Leasing Ole Christian IversenTrond AslaksenRune Arvesen

Transactions Jørgen Haga Anders HeffermehlRoar Sandnes Ole-Jacob LeirskarPer Kumle Stig BasingTrond Aslaksen Jonas MyhreChristian Valdem Remi OlsenKnut Berget Jørgen Anker-RaschJacob A. L'Orsa Lise KaupangVigdis Sundvoll

Research/valuation Ragnar Eggen Tenant representation Lars Føyen KinserdalErik André Bratt Anne Kolstad SkogheimKarin Manengen Christoffer Rohde-HansenBirgitte Heskestad Ellingsen Andreas EgsetTor-Øyvind Skjelvik Administration Hilde BangWilliam Nevstad Christine Lunde KrosbySindre BråtebækAndreas SætherLasse Bjørndahl Board of directors Roar SandnesAdam Ingwall Jørgen Haga

Petter NylendPer KumleOle Christian IversenGeir SaastadRagnar Eggen

63Akershus Eiendom

Haakon VII’s gate 5P.O. Box 1739 Vika NO-0121 OsloReg.no. 963.877.722

T: +47 22 41 48 00F: +47 22 41 48 06W: akershuseiendom.no

This report is produced in cooperationwith

Lästmakargatan 20P.O. Box 1147SE-111 81 Stockholm

T: +46 8 453 50 00F: +46 8 453 51 10 W: jll.com

Kanalveien 75068 Bergen

T: +47 55 99 19 00www.kyteeiendom.no

Søndre gate 4P.O. Box 433 SentrumNO-7404 Trondheim

Petroleumsveien 6P.O. Box 114NO-4065 Stavanger

T: +47 73 89 06 00F: +47 73 89 06 50W: eiendomsmegler1.no

T: +47 51 95 65 75F: +47 51 44 48 83W: eiendomsmegler1.no

KYTE EIENDOMNÆRINGSMEGLING

Photography: Sveinung BråthenBuilding: Dronning Eufemias gate 6BDesign: Anti

the norwegian akershus eiendom property market · 2018. 12. 20. · the oil and gas industry...

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